Why Not To Buy A Painting Business Franchise in Fallston MD

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Painting Franchise - PaintingBusinessAcademy.com ##generated-article-tags##

Should You Buy a Painting Business Franchise in Fallston MD ?

Don't Buy a Painting Business Franchise in Fallston MD

• An Important Note About Our Methodology
• Learn About Our Process
• Our Story
• Why Franchise
• The Process
• Your Investment
• Problem 1 The REAL Cost of a Painting Business Franchise in Fallston MD
• Problem 2 How Franchises Screw Your Ability to Grow Your Business
• Problems 3 Do They Really Care About What You Care About
• Problem 4 You re Buying a Job Not a Business
• With All These Problems Why do People do It
• So what now
• Understanding the Ranking
• Our Purpose
• Opportunity Guide
• Home Services Franchise Industry
• Top Painting News
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• News By Industry
• About
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• Full Support Complete Control

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• Learn How a $1,000,000 Painting Business Works
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• The franchise fee for a territory with a population of between 175,000 and 200,000 is $44,900. If the population of your territory exceeds 200,000, you must pay an additional $500 for each 1,000-population unit (or any portion of a 1,000-population unit) in excess of 200,000.

• For example, for a territory with a population of 201,135, the total franchise fee would be $45,900 .

• The initial franchise fee is fully earned and non-refundable upon receipt.

• During the first 24 months after you purchase your first franchise, you may be eligible for a 10% discount on the then-current initial franchise fee for each additional franchise that you purchase. To be eligible for this discount, you must pay the entire franchise fee at the time you sign the Franchise Agreement for the initial franchise and for each additional franchise.

• Fresh Coat is a member of the International Franchise Association and participates in the IFA’s Veterans Transition Franchise Initiative (“VetFran Program”), which encourages franchise ownership by offering financial incentives to honorably discharged veterans of the U.S. Armed Forces. Fresh Coat offers a $2,000 discount on the initial franchise fee to veterans who meet Fresh Coat’s requirements and those of the VetFran program.

2.  Deposit:  $5,000

• You can reserve a specific territory for up to 30 days by paying a $5,000 deposit and sending Fresh Coat a signed Deposit Remittance Form. The deposit is fully earned and non-refundable upon Fresh Coat’s receipt, in consideration of its reservation and removal from the market of your territory for 30 days, and will be applied toward your initial franchise fee.

3.  Website Fee:  $95

• You must pay an initial Website Fee of $95 to cover the cost and maintenance of website(s) you will use in the operation of the business.

4.  Right of First Refusal:  $3,000

• Your Franchise Agreement does not give you any option, right of first refusal, or similar right to acquire additional franchises, but you may purchase a right of first refusal to purchase an additional franchise territory. The price for a right of first refusal is $3,000, which would be credited toward the initial franchise fee if you exercise the right of first refusal.

• A right of first refusal would give you the right to purchase a specific territory first if another prospective purchaser shows an interest in purchasing the territory within 1 year after you purchase the right of first refusal.

• You would have 7 calendar days after notice by Fresh Coat to exercise the right. Fresh Coat must receive the entire balance of the then-current initial franchise fee for the territory by the seventh day after you receive the notice.

• A right of first refusal lasts for 1 year.

5.  Royalty Fee:  6% of Gross Revenues; $300 monthly minimum

• Due Date:  Payable by the fifth day of each month.

• Paid on Gross Revenues for preceding month ending on Friday.

6.  National Branding Fund:  2% of Gross Revenues; $350 monthly minimum

• Due Date:  Payable by the fifth day of each month.

7.  Local Cooperative Advertising:  up to 3% of your Gross Revenues unless a majority of the cooperative members agree on a higher contribution

• Due Date:  Monthly.

• If an advertising cooperative is established or operating in your area, you must contribute.

8.  Transfer Fee:  the greater of either $10,000 or 3% of the purchase price, plus legal and administrative costs

• Due Date:  Prior to consummation of transfer.

• Payable when you sell your franchise; no Transfer Fee is payable for transfers to a company you form for the convenience of ownership.

9.  Lead Referral Fee:  $10,000

• Due Date:  Upon a transfer of your franchise to a buyer who was already listed in Fresh Coat’s sales database at the time you and the buyer began discussing a sale.

• Intended to partially reimburse Fresh Coat for its costs in developing leads who then purchase from existing owners.

10.  Formation of Business Entity:  variable

• Due Date:  Within 90 days after signing the Franchise Agreement.

• If you sign the Franchise Agreement individually, then you must form a business entity (such as a corporation) and assign your individual rights in the franchise to the business entity.

11.  Grand Opening Promotion:  $3,000 to $4,000

• Due Date:  1-2 months before opening.

• Before opening, you must spend at least $3,000, as directed by Fresh Coat, on a grand opening promotion.

12.  Electronic Copies of Marketing Materials:  variable

• Due Date:  Upon order by you.

• Should you request electronic copies of marketing materials, you will need to reimburse the national branding fund for its costs in creating the materials.

13.  Technology/Software License Fee:  $95

• Due Date:  Monthly.

• You must pay a fee for technology/proprietary software that Fresh Coat licenses or makes available to you for use in the operation of the business.

14.  Website Fee:  $95

• Due Date:  Monthly.

• You must pay a fee to cover the cost and maintenance of website(s) and web hosting services Fresh Coat makes available for your use in the business.

15.  Franchisee Meetings:  $350 per person

• Due Date:  Prior to attending meeting.

• Fresh Coat may hold regional and/or national meetings with its support personnel and franchisees.

16.  Late Fee:  greater of $100 or 10% of royalty or branding fee; $50 for ACH payments returned for insufficient funds; $100 for late sales reports or other business records

• Due Date:  On demand.

• You must pay a late fee on any payment or sales report that Fresh Coat receives more than 5 days late.

17.  Interest:  18%

• Due Date:  On demand.

• In addition to the late fee above, any payments more than 30 days late accrue interest at the rate of 18% per year.

18.  Audit Fee:  cost of audit, plus 18% interest on underpayment

• Due Date:  On demand.

• Payable only if audit is prompted by your failure to maintain or submit records or audit shows an understatement of Gross Revenues of at least 3% for any week.

19.  Territory Amendment Fee:  $1,500

• Due Date:  Prior to amending territory.

• If Fresh Coat allows you to amend your franchise territory, you must pay a fee to compensate it for its costs.

20.  Sales/Use Taxes:  variable

• Due Date:  Payable with your royalty or national branding fee payments.

• You must pay any state or local sales or use tax that may be assessed on the royalties, advertising fees, or other fees you pay to Fresh Coat.

21.  Reimbursements:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must reimburse Fresh Coat if it pays your expenses if you fail to so do, such as rent, taxes, customer refunds, or other liabilities.

22.  Legal Expenses:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must pay any legal expenses Fresh Coat incurs, including attorney fees, to enforce your Franchise Agreement.

23.  Mapping Software Updates:  $200

• Due Date:  On demand.

• Fresh Coat may, from time-to-time, need to update its internal map-keeping software to reflect demographic and population changes in your territory; if Fresh Coat does so, it may charge you a reasonable fee, not to exceed $200, to compensate it for its costs.

24.  Indemnification:  amount of expense advanced, plus 18% interest

• Due Date:  On demand.

• You must reimburse Fresh Coat fully if it is held liable for claims arising from your business.

WHY YOU OUGHT TO NOT BUY A Painting Business Franchise in Fallston MD

If you are assuming of purchasing a painting franchise, quit today.
I'm going to break down the basic issues with buying a paint franchise, and also the alternative options you need to start a paint business.

This is based on my experience growing a successful paint service where we considered ending up being a franchise however decided for a collaboration arrangement rather. I hear the battles of franchisee's regularly, and also I feel for them.



Painting Business Franchise in Fallston MD FAQs
How much does it cost to open your own franchise?

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Are painting companies profitable?

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How much is a Five Star Painting Franchise?

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Is painting a good business to start?

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How much do painters make?

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How much money can you make owning a painting business?

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How can I start a painting business with no money?

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Is painting a good trade?

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Is a Painting Business Franchise in Fallston MD a good investment?

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Is it hard to start a painting business?

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How can I promote my painting business?

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How do I market my painting business?

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What are the disadvantages of a Painting Business Franchise in Fallston MD ?

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Is it better to start a painting business or buy a Painting Business Franchise in Fallston MD ?

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BR> I do not want you to finish up in the very same setting that several franchisees find themselves in.
There is a better way! We will start with the issues of a franchise, then we'll enter solutions.

PROBLEM # 1: THE REAL COST OF A PAINTING FRANCHISE
CertaPro Painters, Five Star Painting, 360 Painting, and also WOW-1-Day Painting are a few of the larger franchise business available.
These franchise business vary from $10,000-$ 40,000 in franchise business fees just for the right to the franchise business in a restricted number of zip codes where you can run your franchise business.
They likewise take 6-9% as an recurring aristocracy ... forever.
If you are in service for 10 years and you create $5,000,000 in earnings, this franchise business winds up costing you upwards of $500,000. That's a high price to pay.
And obviously you get some assistance as well as company systems, however everything that a franchise provides can be gotten through other avenues for much less than $500,000.

PROBLEM # 2: HOW FRANCHISES SCREW YOUR ABILITY TO GROW YOUR BUSINESS
When you buy a Painting Business Franchise in Fallston MD you are getting the civil liberties to that service in a set region. You are assigned a handful of zip codes where you have the legal rights to business.
This is a HUGE problem. The easiest method to grow as well as broaden a painting company is by increasing geographically. Franchise business take away this right.
Painter Choice is our advertising firm. We deal with franchisees all over the nation. I constantly feel awful for these entrepreneur since they have such a tough time producing service.
A regular firm in Atlanta, for instance, can use our lead service in North Atlanta to create 20-30 leads monthly.
A franchisee in North Atlanta who just possesses the rights to 7-8 zip codes can only generate 5-7 leads per month from our lead solution.
Simply put, if those franchisees had their very own business, they could quickly boost their business 3-5 times! In various other terms, that implies an boost from $500,000 to $2,000,000. This is a enormous restriction on your possible business growth.
As a franchisee, your only alternative is to purchase even more area, or such it up and maintain your organisation small.
If somebody else currently owns the neighboring region, you don't have that choice.

TROUBLES # 3: DO THEY REALLY CARE ABOUT WHAT YOU CARE ABOUT?
Essentially, franchisees and the franchisor have actually misaligned motivations. The franchisor intends to generate as much earnings as feasible because they earn money a set percent of income.
However as the company proprietor, your goal is to take full advantage of profit.
I'm a big follower in straightening motivations, and in this situation, motivations are not lined up. They are playing a different video game than you are. They wish to optimize revenue in all of their territories, as well as sell as several franchise business as they can.

PROBLEM # 4: YOU'RE BUYING A JOB, NOT A BUSINESS
You're getting a work. Allow me reveal you why.
Because of nobilities, your margins finish up being around 10% -12% nevertheless organisation expenditures.
In order to make $100k/year you 'd need to have a $1,000,000 company.
You can not have a $1,000,000 organisation in the little territory. And also even if you can, you're stuck at a maximum of $100,000 for yourself. You're paying $70k-$ 100k/year in aristocracies wherefore?
That's a crazy amount of cash to pay your franchise ... the same company that has an agreement that they hold over your head not permitting you to expand your business geographically.
They've obtained you by the balls.
Or, you can purchase an additional area to expand. But again ... I would certainly rather not need to pay for the right to expand my business. That's ridiculous.
Many franchises wind up in the $500,000-$ 600,000 array. You can possibly make $80,000-$ 110,000, sure. Yet you additionally do not ever before have sufficient margin to work with other people to run the whole organisation, which is just one of the best advantages to building a firm.
You most likely aren't producing sufficient revenue to even employ really solid employees. In our business, we pay concerning 5-6% to our manufacturing manager that manages $1,000,000 in manufacturing. That's $50,000-$ 60,000 per year for the supervisor. Yet if you are just doing $500,000 a year in profits, you can pay 5% ($ 25,000) to your manufacturing supervisor, which is not nearly enough money for a strong employee.
Your options are to pay a higher percentage ( eliminating your earnings margin), or do the task on your own ( eliminating your lifestyle). Both of which are not very eye-catching alternatives.
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IN SUMMARY:
You pay a great deal of cash to restrict your growth, you do not reach construct your own point, and also if you intend to expand geographically you need to spend for the legal rights to do so ... presuming nobody else already possesses the legal rights to the region you are shopping.
As a result of your restrictions, as well as the high nobility cost, you are dramatically limited in your ability to grow your income, construct a strong group, and also build a large business.

WITH ALL THESE PROBLEMS ... WHY DO PEOPLE DO IT?
# 1-- They do it for the solid organisation strategy
# 2-- They do it for the assistance and training provided by the franchise business
# 3-- They do it for the neighborhood of various other franchisees so they aren't alone
# 4-- They do it out of concern of failure
Currently, allow's check out options. Just how can you get all the benefits without paying the steep cost of a franchise?

BENEFIT # 1: THEY DO IT FOR THE SOLID BUSINESS PLAN
For 1/10th of the cost of a franchise, you can purchase my organisation system. This is the precise organisation system we utilize and follow in our organisation, which did over $3,000,000 in revenue in 2016.

ADVANTAGE # 2: THEY DO IT FOR THE SUPPORT AND TRAINING PROVIDED
My course includes training as well as assistance. When you start with Painting Business Academy, you obtain accessibility to the whole business system as well as all of the training that accompanies that system.

ADVANTAGE # 3: THEY DO IT FOR THE COMMUNITY SO THEY AREN'T ALONE
When you join Painting Business Academy, you additionally join our personal members-only Facebook group. We have lots of inquiries asked on a daily basis from our members.
Our neighborhood is very involved and energetic.
People in our neighborhood also share their successes. Simply a few days ago a person shared a Facebook marketing strategy, word for word, that's killing it for their business.

ADVANTAGE # 4: THEY DO IT OUT OF FEAR OF FAILURE
Paying more cash does not eliminate the fear of failing. With Painting Business Academy, you can get access to a strong service plan, organisation training, as well as all of the done-for-you types and also systems that are verified to develop a million-dollar paint organisation.
You also get access to the outstanding area of similar entrepreneurs doing the exact same point as you that we talked around earlier. While you do pay 1/10th of the cost in advance (on the high-end), you have NO royalties to pay after that.
The likelihood of failure is the exact same whether you are in a franchise or running your own organisation. However, when you acquire a franchise, you are taking a bigger danger, indicating there's a bigger failing if you do stop working.

SO WHAT NOW?
Prior to you purchase a franchise and toss hundreds of dollars down the toilet for a tried and tested system, you could intend to have a look at Painting Business Academy.
Painting Business Academy is also a tried and tested system to develop a million-dollar paint business, with a neighborhood of thousands of others. Additionally, there is no recurring royalty, as well as no geographical constraints to development.
Obtain all of the advantages of a Painting Business Franchise in Fallston MD for a portion of the cost. Examine the course out right here and also contact me if you have any questions.
The painting business is a excellent service to be in! I hope you'll belong of it soon.
Great good luck!

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You don't necessarily need a college degree, a bunch of money in the bank or even painting business experience to start something that could become the next major success. However, you do need a strong plan and the drive to see it through.
If you're here, odds are you already have the drive, but you might not know how to start building your painting empire.
That why we are here.
1. Evaluate yourself.
Let's start with the most basic question: Why do you want to start a painting business? Use this question to guide what kind of painting business you want to start. If you want extra money, maybe you should start a side hustle. If you want more freedom, maybe it's time to leave your 9-to-5 job and start something new.
Once you have the reason, start asking yourself even more questions to help you figure out the type of painting business you should start, and if you have what it takes.
What skills do you have?
Where does your passion lie?
Where is your area of expertise?
How much can you afford to spend, knowing that many painting businesses fail?
How much capital do you need?
What sort of lifestyle do you want to live?
Are you even ready to be an entrepreneur?
Be brutally honest with your answers. This will create a foundation for everything you do moving forward, so it's better to know the truth now than later.

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